Question 1

Why would I sell my judgment to Half Dome Capital?

Accepted Answer

Half Dome Capital is buying judgments in carefully selected cases as an opportunity for creditors (plaintiffs) to sell their judgments for a immediate, certain cash that you can use now. Half Dome Capital accepts the recovery and timing risk so you keep the cash regardless of what we ultimately recover.

Question 2

Why doesn't the defendant ("debtor") pay the judgment?

Accepted Answer

Most debtor's have the necessary liquidity to pay their debts. That limits your ability to recover what you’re owed, which is why selling to a judgment buyer is a great option.

Question 3

What are the benefits of selling my judgment?

Accepted Answer

The judgment seller’s primary motivation for selling a judgment is to (i) realize an immediate cash payment, (ii) avoid the risk of delayed recovery, less recovery, or potentially no recovery, (iii) eliminate their risk of receiving nothing.

Elimination of Recovery Risk: In many cases, judgment recoveries are low or non-existent after attorneys, private detectives, sheriff, court, and other expenses are paid. Selling your judgment for cash allows you to secure a definitive recovery, eliminating the risk of an uncertain judgment enforcement outcome.

Immediate Cash Conversion: The timeline in collecting a judgment is measured in months or years due to the slow pace of litigation, inefficient sheriffs, and legally mandated waiting periods. Selling your judgment for cash eliminates the time risk associated with collecting and allows you o get paid immediately.

Elimination of Consideration Risk: Assuming you can find assets to collect from you may end up with illiquid assets like jewelry, business equipment,  automobiles, or real estate. When you sell your judgment for cash, you eliminate the risk of receiving illiquid assets.

Elimination of Time and Cost Associated with Judgment Enforcement: Judgment enforcement involves a great deal of paperwork and correspondence between the Debtor, the court and creditors. In return for selling your judgment for cash, you get back the time, money and valuable resources required to follow and participate in a case from start to finish.

Favorable Tax Benefits: Bankruptcy sellers are very often be eligible for a tax benefit by applying the loss on the uncollected portion of your judgment against current Income.

Question 4

How soon will Half Dome Capital pay me?

Accepted Answer

The entire process from first contact to receiving your funds can be completed within a few days. We typically pay judgment sellers cash when they sign the assignment agreement.

Question 5

Is it safe to share information about my judgment?

Accepted Answer

Yes. We only ask for publicly available information. Did you know that your case information is already available online? Many courts, such as San Francisco, even include document images online. All courts make all documents available for in-person public viewing.

Question 6

How does Half Dome Capital determine its offer price?

Accepted Answer

Our offer price for your judgment is based on two main factors:
The prospects of recovery:
The nature of the case, whether the judgment is a "default judgment", whether the debtor participated in the case, and how the debtor was served, and more.

The level of recovery:
The Debtor’s assets, any other liens or judgments against the Debtor, the estimated time until recovery, the potential for receiving illiquid assets, and our required return.

Obviously, not all judgments are equal and not all will be of interest to a trade claims buyer. In general, judgments that are being purchased are (i) large, (ii) well-litigated with participation by the debtor, (iii) secured by liens against real estate, and (iv) recognized as valid by the debtor.

Question 7

What size judgments will you purchase?

Accepted Answer

We only purchase judgments greater than $15,000. The cost to collect smaller judgments is too high.

Question 8

If Half Dome Capital receives nothing from the Debtor, will you demand a refund?

Accepted Answer

No, Half Dome Capital assumes all of the recovery risk in terms of the amount paid on the judgment.

Question 9

Do you have any requirements for the sale of my judgment?

Accepted Answer

Half Dome Capital requires that you have a final judgment that has not been previously assigned, appealed, or satisfied. We recommend that you check your records carefully prior to accepting our offer. We reserve the right to review the validity of any judgment and may refuse to purchase your judgment for any reason.

Buying and selling judgments is freely allowed in California and can be of benefit to both the creditor and the judgment buyer.

The following steps outline the typical process involved in buying and selling judgments. Note that the Court is not involved in negotiating or approving the purchase price or judgment assignment documentation.

Step 1: The Offer: The process usually begins with a buyer offering, in written or verbal form, to purchase a judgment.

Step 2: Confirmation: After a price is agreed upon, Half Dome Capital will complete it's due diligence (research). This takes just a day or two.   Sometimes this step is skipped in favor of going right to an Assignment of Judgment Agreement.

Step 3: Judgment Purchase Agreement: This one-page document describes all the terms and conditions of the offer. Some key terms include the price, payment terms, seller representations and warranties, mutual responsibilities, governing law, etc.

Step 4: Acknowledgment of Assignment of Judgment: This one-page document is required by the Court as a means to notify the debtor and other parties of the judgment assignment. The Acknowledgment of claim does not state the price paid.  All terms of the Judgment Purchase Agreement remain confidential.

Question 10

What type of judgments does Half Dome Capital buy?

Accepted Answer

We buy county court, district court, superior court, and select small claims court judgments. We also buy labor board awards that have been filed as judgments.

Question 11

What else will I have to do to sell our judgment to Half Dome Capital?

Accepted Answer

Once Half Dome receives the signed Purchase Agreement and Acknowledgment of Assignment of Judgment, we will file the Acknowledgment with court and no further action will be required on your part.
Our Purchase Agreement does require your reasonable future cooperation should we need a document signed, for example. However, this is rare.

Question 12

Is Half Dome Capital affiliated with or hired by judgment debtors? Is Half Dome Capital affiliated with the court?

Accepted Answer

No. Half Dome Capital is an independent investment firm founded in 2008 and is not related to the debtors or affiliated with the court.

Question 13

Is there any cost to me?

Accepted Answer

No! We will never ask you to pay us. We research your judgment for free and we make you a no-obligation cash offer. Then you sell us your judgment only if you like our offer.

Question 14

If I decide to sell my judgment, what should I do next?

Accepted Answer

Please submit your judgment on our Bid Request Form.

Question 15

Why not just hire an attorney?

Accepted Answer

An attorney will charge you $350 or more per hour. Also, most attorneys are not familiar with effective judgment collection strategies. It’s an area of law that few attorneys specialize in.

Question 16

What are some of the costs involved in enforcing a judgment myself?

Accepted Answer

Costs of recovering a judgment can include research costs, court fees, sheriff fees, process server fees, garnishment fees, abstract fees, and more. When we pay you cash for your judgment we absorb all of those costs ourselves.

Frequently Asked Questions